GM takes sides, invests $500 million in Lyft to oppose Uber
I'm curious as to the forum's take and Detroit experiences on the disruption of the taxi market created by the emergence of the 'ride-sharing' services Uber, Lyft and the recently demised Sidecar.
Crain's reports in this article that GM is bolstering the struggling Lyft with an eye to a driverless-cab future.
Quote:
GM and Lyft said they will work together to develop a network of self-driving cars that riders can call up on-demand, a vision of the future shared by the likes of Uber CEO Travis Kalanick and Google-parent Alphabet Inc. More immediately, America’s largest automaker will offer Lyft drivers vehicles for short-term rent through various hubs in U.S. cities, the companies said in separate statements Monday.
To see for myself, last summer I downloaded the Uber app to my iPhone and tested if by hailing a short ride from a walkable Starbucks, where I never see a passing cab, to my home.
I was impressed. Not only was a ride immediately on its way, I knew the price, the year and make of the car, the rating of the driver, and could see it moving toward me on the map [as well as seeing the movement of 3 or 4 others in the vicinity]. The driver was a genial retired guy who did it for side bucks about 15 hours a week.
On first blush it seems win-win. Customer gets better, lower cost service, drivers make decent money, no more shot-the-dark wondering if and when the cab was coming and who would be driving it. But I also read of darker stories, driver's getting squeezed, traditional cab companies who have to comply with regulations losing out and now the above, a driver-less taxi future where the jobs are gone.
Thoughts?